Poor controls over credit limit approval or in changing the credit limit in the master file may result in
A)confused and frustrated customers.
B)incomplete sales records.
C)financial statement errors for sales and AR accounts.
D)excessive bad debts and uncollectible accounts receivable.

Question

Quizplus · Accepted Answer

Poor controls over credit limit approval or changes to credit limits in the master file can lead to excessive bad debts and uncollectible accounts receivable. This is because customers may be extended credit beyond their ability to pay, leading to a higher risk of non-payment.

Poor Controls Over Credit Limit Approval or in Changing the Credit